FX.co ★ Gold Technical analysis for July 24, 2014

The Gold price has broken the the $1,300 price level and is heading towards the previous low at $1,290 and where the 38% Fibonacci retracement is found. I believe it is more probable to see the $1,290 low being broken and the Gold price falling towards the 61.8% retracement.

The short-term trend is bearish. The price is below the Ichimoku cloud resistance and has been rejected at the 61.8% retracement of the 5 wave move from $1,346 to $1,290. The upward move from $1,290 to $1,325 was corrective as expected and reached our sell target. Now, prices are moving lower as expected and I see the price moving at least towards $1,285.

The daily chart above shows that the price is heading towards the Ichimoku cloud near $1,285-80 area. Critical support is found at $1,280 where the 61.8% Fibonacci retracement of the rise from $1,240 to $1,346 is found. Breaking below that level will increase the chances of confirming our bearish scenario towards $1,000.